Week's Events Point to Global Collapse; Max Keiser Speaks Out on Germany Bank Downgrade, Global Economy

Editor's Note: This was a particularly trying and nervous week for the markets, as political and economic tensions seemed to escalate on daily basis. From China's interest rate easing to the downgrade of Germany's banks to the rising wave of racism and bias, the swirl of history seemed to take on an unusually pungent aroma, one which permeated all levels of discussion and event horizons.

I am horrified at my own - and that of Max Keiser and many other non-mainstream journalists - prognosis for the future of the global financial system, which is being rendered apart by self-created forces which have taken on unforeseen lives of their own. A complete crash could occur almost at any time without warning, with a ferocity that would make 2008-09 look like a leisurely stroll. With all my heart, I wish my predictions turn out to be 100% incorrect, though continuing and recent developments point in the opposite direction.

Of course, the elitist coalition of bankers and sovereign leaders will continue to apply bandages and tourniquets as needed, even though they must know that a mortal wound cannot be patched, that wound being the complete insolvency of the world's largest banks, begun in 2008 and proceeding this week to completely engulf all of Spain's mightiest financial institutions.

As the week drew to a close, US markets garnered further gains on what had to be the lowest trading volume day of the year. (Money Daily does not keep complete records of much, but the daily volume reports at the end of each daily post provide that statistic - though scrolling through five-plus months of posts is a bit of an arduous task late on a Friday afternoon. Trust in the fact that if today was not indeed the lowest volume of the year, it was in the lowest three.)

Zero Hedge (zerohedge.com) reports that volume for the week was the slightest of the year, in a week which produced the year's best gains. This kind of rigged result is exactly what's wrong with markets and the economy in general: they aren't functioning. Today's plaster to the upside, accompanied by abysmal volume is manifestation of the banker Ponzi in full bloom, trading amongst each other in a rigged game to the detriment of formerly-free markets.

At some point, the manipulation will come to an end, and likely an abrupt one, fully engineered by Rothchilds and fellow Illuminati types.

A point of reference is the upcoming November US presidential election, which incumbent president, Barack Obama, is purposely throwing, having done his job for his bankster allocators. The first hint that Obama was not fully engaged or committed to winning a second term came in the form of his absurd opposition to the Keystone XL Pipeline. His stance to block the project - which would bring oil from Canada's oil sands to America, but, as of last notice may be headed to China instead - until after the election, baffled all but the mainstream press, who haven't the collective mind power or journalistic will to delve into matters that involve anything more than rehashing the contents of official news releases.

Today's statement that the private sector in America is doing "OK" is the second nail in the defeat of Obama at the polls. Such obvious policy blunders and plainly unfounded statements point to nothing less than self-imposed defeat to the weakest Republican candidacy since Bill Clinton's second term re-election. Mr. Obama is an eloquent, intelligent speaker, but he has failed to ignite any fire of passion in either Democrats or independents. It's a very good bet that handing the presidency to the biggest shill for the 1%, in the person of Mitt Romney, is a reality.

For the week - again, the best of the year on the lightest volume - the Dow gained an ungodly 456 points, this on the heels of the month of May in which the blue chips gave back more than 800 points. Bear in mind that this gain comes as global conditions worsen, with little to no positive data or news.

The same kind of ride-up occurred on the NASDAQ, up 110 points, and the S&P, which registered a gain of 45 points. The whole affair is nothing more than a dog-and-pony show, and one which is not particularly well-staged. The sheeple of the world take it all in without question, that being one of the keys to the problem.

Along with the low volume, the session was characterized by slender breadth and a slight edge for new highs over new lows. Commodities, which began with oil down by more than $2.00 on the current futures price, were relatively flat by day's end.

In line with developments of the past few weeks - and years, for more perspective - the contagion from banking to sovereigns to currencies is accelerating, nearing an extremely dangerous global condition of collapse.


If implosion happens within weeks, it would be no surprise to the growing number of people who view the past four years of currency manipulation and incessant printing with disdain and skepticism. Global elites are desperately clinging to largely Keynesian ideas and potential solutions which have little to nothing to do with solving the epic calamity unfolding in real time.

There's no telling how much longer the global condition can be restrained as events in areas around the world are spiraling out of control at a rate of speed that is nearly impossible to track.

The Nicholas Brothers

Forget about the press reports and news conferences with governmental/political leaders like Obama, Merkel, Draghi, et. al. Issues on the ground are overtaking the ability of the political process to deal with the expanding crisis. The powerful are becoming less so, and eventually will be held responsible, and thus, powerless as populations erupt in wave upon wave of tension, uprising, catastrophe. Greece is just the most visible example, while Syria is already a lost cause due to the inaction or inability of bodies such as NATO or the loosely-aligned Euro-American force majure to act properly - and promptly - to quell the spreading genocide. Spain, Italy and France continue their joint descent into anarchy which will eventually pull all of Europe down with it.

Must see TV: Host of the Keiser Report, Max Keiser, brilliantly lays out the present and near-future in this six-minute segment courtesy of Russia Today.



In keeping with our new-found hobby of digging up rich pieces of joyful Americana from bygone eras, the following clip from the 1942 film, Orchestra Wives, featuring the Glenn Miller band with Tex Beneke performing "I've Got a Gal in Kalamazoo" along with the fast-talking, high-stepping dancing duo, the Nicholas Brothers, the elder Fayard, and Harold.

It's a real piperoo! Enjoy.



On a strictly personal note: Many thanks to the two saints on earth who appeared today as needed. Whatever one's personal beliefs, there is a power in faith that is beyond our small level of comprehension.

Dow 12,554.20, +93.24 (0.75%)
NASDAQ 2,858.42, +27.40 (0.97%)
S&P 500 1,325.66, +10.67 (0.81%)
NYSE Composite 7,553.77, +33.94 (0.45%)
NASDAQ Volume 1,396,691,125
NYSE Volume 3,497,203,500
Combined NYSE & NASDAQ Advance - Decline: 3810-1757
Combined NYSE & NASDAQ New highs - New lows: 111-78
WTI crude oil: 84.10, -0.72
Gold: 1,591.40, +3.40
Silver: 28.47, -0.06

Correlation Trade, Weak Dollar, Hot Air Boost Stocks

About the only thing hotter than stocks on this 21st of July, 2011, was the weather, with temperatures hovering around the 100-degree mark in much of the nation, but especially in the Midwest, Mid-Atlantic and East coast. But the correlation trade - short dollars, long stocks - was in effect throughout the session, which meant that stocks had to soar... and they did, closing in on the nearly three-year highs set back in late April.

Coming off a string of recent earnings report beats by the likes of Google (GOOG), Apple (AAPL) and IBM, one would have expected the NASDAQ to lead the way, but it was the S&P and Dow Industrials which showed the greatest percentage gains of the day.

It's obvious to anyone with more than a passing interest that the banks have been at their manipulative best of late as financial stocks have led the way each of the past two sessions, even as these very banks put in quarterly earnings showing losses, pay no dividends, are largely insolvent and the nation lurches ever closer to a debt default and ratings downgrade, the latter being all but inevitable after the well-rehearsed clown show in Washington, DC.

One can hardly blame the elitist banking class for boosting their own portfolios at this juncture. After all, its been proven that whatever risks they take will be guaranteed to win, since the US government is back-stopping the whole TBTF crowd. They might as well take while the taking is good. It may not be the same in a fortnight or so.

For the rest of us, the alternative for the day was to find air-conditioning, drink plenty of fluids and watch the circus from afar. The risks of trading in stocks is far too high for the average plebeian. And so it goes, that the rich get richer. The poor, and, especially those stuck in the middle, may get the ultimate revenge as more and more people turn their backs on the world's most corrupt system of governance and finance and default in record numbers on school loans, car loans, mortgages, credit cards and all manner of financial obligations.

The end to this grand farce of fiat money is coming, regardless of the degree of normalcy bias built into us all from TV and the media. The waiting, admittedly, is a royal pain. Either way, it's death by deflation or inflation (which seems to be winning lately), or both.

Dow 12,724.41, +152.50 (1.21%)
NASDAQ 2,834.43, +20.20 (0.72%)
S&P 500 1,343.80, +17.96 (1.35%)
NYSE Composite 8,411.45, +129.62 (1.57%)

As one would expect, advancing stocks beat back decliners in a big way, 4901-1692. On the NASDAQ new highs reached 88, while new lows came in at 25. The NYSE had even more of a pronounced bias, with 154 new highs and 20 new lows. The combined total of 242 new highs and 45 new lows would seem to suggest that the rally has legs, though one never knows when or if Europe will fall completely apart at the seams, sending the Euro lower, the dollar higher and stocks down. Volume was actually quite fantastic. Perhaps some new suckers (investors) were brought into the foray.

NASDAQ Volume 2,253,718,500
NYSE Volume 4,812,432,500

As goes the dollar, so - in the opposite direction - goes oil, and with the dollar down, WTI crude leapt back over the $100/barrel mark in the early part of the session, but backed off to close up only 73 cents, at $99.13.

Naturally, gold and silver were hammered to death, with gold losing $9.90, to $1,587.00, and silver falling 61 cents, to $38.95 per ounce.

The conditions are about to change - for silver, at least - as the Hong Kong Exchange will introduce a silver futures trading mechanism at the open of business on Friday, which will be shortly after 8:00 pm EDT. By this time tomorrow, the price in Hong Kong may be $44 per ounce and quite a bit lower here in the states.

We shall see soon enough.